• Apindo Sees 2 Strategies to Boost Indonesia's Export Performance

    The Indonesian Employers Association (Apindo) proposes two strategies to boost Indonesia's export performance in 2017: (1) seek new export markets and (2) export 'halal' products (which adhere to Islamic law) to the Middle East. Last week Indonesia's Trade Ministry revised down its export target for 2017. The Ministry now expects Indonesia's export performance to grow 5.6 percent (y/y) to USD $136 billion this year (from an estimated USD $129 billion in 2016). The revision makes the nation's export target in line with the slow recovery of international demand.

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  • Investment Realization in Indonesia's Jakarta Fell in 2016

    Investment realization in Indonesia's capital city of Jakarta fell to IDR 51.2 trillion (approx. USD $3.8 billion) in full-year 2016, down from IDR 55 trillion worth of investment in the preceding year. Foreign direct investment (FDI) in Jakarta was recorded at IDR 41.5 trillion in 2016, while domestic direct investment (DDI) reached IDR 9.7 trillion. What explains this overall decline of investment in Jakarta?

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  • Will Donald Trump's Protectionist Policies Impact on Indonesia?

    Frederic Neumann, Managing Director and Co-Head of Asian Economics Research at HSBC, says Indonesia is well positioned to feel limited impact only of US president-elect Donald Trump's (looming) protectionist policies as Indonesia's export performance contributes a mere 21.1 percent to the nation's gross domestic product (GDP). It is in fact domestic consumption that forms the backbone of the Indonesian macroeconomy, accounting for about 56 percent of GDP, and thus provides a buffer against global turmoil.

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  • Japan & Indonesia to Cooperate on Key Infrastructure Projects

    Indonesian President Joko Widodo and Japanese Prime Minister Shinzo Abe will witness the signing of a joint study (a cooperation between Indonesia's Transportation Ministry and the Japan International Cooperation Agency, or JICA) into the medium speed railway - connecting Jakarta to Surabaya - on 15 January 2017 at the Presidential Palace in Bogor. Besides the medium speed railway, Widodo and Abe will also discuss funding for a deep-sea port project in Patimban (West Java) as well as contracts for the Masela oil & gas block in eastern Indonesia.

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